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Melting Silver Coins

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biokemist6's Avatar
United States
12437 Posts
 Posted 11/11/2010  12:38 pm  Show Profile   Bookmark this reply Add biokemist6 to your friends list Get a Link to this Reply
My local dealer seems to have the opposite problem, he never needs to send coins to the refiner. He only sends off the truly scrap silver(jewelry, table items, etc) but he practically has a waiting list for face value bags. As soon as he accumulates a $100, $500, or $1000 face value of silver coins, there is a customer waiting to buy it.
Pillar of the Community
DNA's Avatar
United States
2734 Posts
 Posted 11/11/2010  12:49 pm  Show Profile   Bookmark this reply Add DNA to your friends list Get a Link to this Reply
Same here. There's so many buyers wanting junk silver, dealers won't
bother with melting U.S. 90% coins.

The only true "junk" silver nowadays is scrap tableware and jewelry.
Dealers here will even sell their nicer sterling tableware and jewelry.
Pillar of the Community
upstate's Avatar
United States
3283 Posts
 Posted 11/11/2010  12:49 pm  Show Profile   Bookmark this reply Add upstate to your friends list Get a Link to this Reply
The think it is sad that coins get melted.I suppose for poor and fair coins it my be appropriate.
I guess it makes the coin I have potentially more valuable.
Valued Member
Sukardnam's Avatar
United States
103 Posts
 Posted 11/11/2010  1:59 pm  Show Profile   Bookmark this reply Add Sukardnam to your friends list Get a Link to this Reply
As someone who deals in both coin silver and scrap. I don't know why anyone would melt coins. If I did I can only get 90% of spot price for them. Not to mention I have a waiting list of about 20 people who will buy anything I get for spot. That said the refinery and smelters couldn't care less, silver is silver and they make money when its melted. I do melt krugerrands and maple leaves every week just because they are hard to move in huge quantities. All in all its about how quickly you can put cash back into your pocket so you can start the whole process again.
Valued Member
ACE Mike's Avatar
United States
438 Posts
 Posted 11/11/2010  2:00 pm  Show Profile   Bookmark this reply Add ACE Mike to your friends list Get a Link to this Reply
Thanks for all the input everybody!

I think we are heading toward a day in the not too distant future where the melting of coins will end as the supply of junk evaporates. As we all know, there is a finite supply, even of circulated 1921 Morgans and 1964-D Washington quarters, creating a situation like biokemist6 and DNA related above.
Bedrock of the Community
Bryan1315's Avatar
United States
14454 Posts
 Posted 11/11/2010  2:42 pm  Show Profile   Bookmark this reply Add Bryan1315 to your friends list Get a Link to this Reply
well in the 70's you have to remember silver was 50 dollars a ounce and the dealers may have bought the bags for allot less so when it skyrocketed they probably made 500% on the sale and it was immediate. They didn't care about the coins because back then Morgans werent all that popular any way so this was a quick way to make money and millions of Morgans were melted at this time, most of them were Uncirculated. I can't help but imagine how many rare VAM's were melted at that time along with some that would have made DMPL and super high grades since they never looked at them, they just sent them in still sealed from the mint
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DNA's Avatar
United States
2734 Posts
 Posted 11/13/2010  7:25 pm  Show Profile   Bookmark this reply Add DNA to your friends list Get a Link to this Reply
The reason why junk silver isn't being melted anymore (by coin dealers)
is because there are now many people who want to hold 90% junk silver
coins as bullion instead of cashing them in and melting them.
So, it's not worth the effort to have a smelter haul away what you can
resell right there in the store. There was virtually no demand
to hold junk silver as bullion in 1980.

The Hunt Bros. madness depressed spot silver prices for 20 years afterward.
A number of silver coins not melted were returned to circulation. Our younger members
would be shocked at how much junk silver could be found in circulation in the 1980's
(especially 40% JFK's, worth barely more than face when silver was under $5 an oz.).

In 1982, I started saving every silver coin I found, hoping I'd someday
be able to cash in on another Hunt Bros. peak.
But since 2000, I've seen steady long-term growth in silver spot prices.
Which sure beats a sudden spot price explosion, then 20 years of stagnation!
Steady growth over a long period makes people want to hold silver
instead of melting it...


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